Scheme transactions

<<glossary:PayCredit>> receives scheme transactions from <<glossary:Banking.Live>> through <<glossary:FAST>>. <<glossary:Banking.Live>> sends these scheme messages to <<glossary:PayCredit>> for financial authorization and notification of presentments.

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You can read more on <<glossary:FAST>> in our <<glossary:FAST>> guides located here.

You can click on the following scheme transactions to learn how <<glossary:PayCredit>> processes them:

• Authorization
• Authorization reversal
• Authorization partial reversal
• Settlement
• Presentment reversal
• Refunds and credit transaction

Authorization

<<glossary:PayCredit>> processes authorization messages using identifiers including:

• Message_Type e.g. 0100
• Message_Desc e.g. Authorization Request
• Spend_Type refer to table below.

The table below showcases how <<glossary:FAST>> Spend_Type is mapped to <<glossary:PayCredit>>'s transaction_type_id.

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transaction_type_id

transaction_type_id is used by <<glossary:PayCredit>> to allow you to categorize and apply different interest rates to different types of debt.

Authorization messages are processed by:

1. Checking valid account_id exists
2. Authorizing transaction message based on available balance (balance limit - balance authorized), card status and any other applicable controls
3. Generating and sending response message to <<glossary:Banking.Live>>
4. Updating account balance
5. Recording transaction in the <<glossary:PayCredit>> system, including
   1. amount, date/time, statement id, transaction_type, transaction status, transaction reference (TID)
   2. token, PID, TID, RID, spend type, spend location, total_fee_bill

As transaction has not yet settled, <<glossary:PayCredit>> has a record of a Pending transaction. Therefore no changes are made to the <<glossary:PayCredit>> ledger.

Potential authorization results

You can use the table below to understand the potential results of an authorization message:

Authorization reversal

<<glossary:PayCredit>> processes authorization reversals as follows:

1. Checks valid account_id
2. Searches for initial authorization to be reversed based on the TID
3. If initial authorization is found, transaction status is changed to Reversed
4. Reversal transaction of transaction_type_id 60 is posted
5. Authorized account balance is updated
6. Acknowledgement is logged and sent
7. Original TID, original amount and reversal amount are logged in the <<glossary:PayCredit>> system.

As transaction has not yet settled, no further updates occur.

Authorization partial reversal

Authorization partial reversal transaction are processed the same as a full reversal, except that the reversal transaction is only for the partial reversal amount.

Settlement

• When a presentment message is received for a previously authorized (pending) transaction, <<glossary:PayCredit>> updates the status of the pending transaction to settled.
• When a presentment message is received and has no corresponding previously authorized transaction, the presentment message status is automatically updated to settled.

Updating a transaction status to settled triggers the process to update the <<glossary:PayCredit>> ledger. This occurs in near real-time resulting in the ledger being updated for debit(s) and credit(s) postings.

Presentment reversal

<<glossary:PayCredit>> processes presentment reversal messages to reverse a previous presentment. As the <<glossary:PayCredit>> ledger would have been updated by the initial presentment, the presentment reversal generates the applicable <<glossary:PayCredit>> ledger record to reverse the update from the initial presentment.

In the event the presentment reversal is received one or more days after the initial presentment, the <<glossary:PayCredit>> ledger update includes removal of the associated accrued or posted interest associated with the initial presentment.

• If the initial presentment is part of the previous statement period, the removal of the posted interest results in an interest reversal transaction to the account.
• The transaction status of the initial presentment (that has been reversed) will be marked as reversed.

Refunds and credit transactions

<<glossary:PayCredit>> processes refunds in a similar approach to spend transactions.

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Refunds are only applied to the <<glossary:PayCredit>> ledger once the transaction has settled.

Therefore, if the refund is part of an authorization message that has not yet settled it will be applied as a pending transaction and will only be posted to the account once the settlement message is received.

Refunds and other credit transactions are processed through the repayment service. This allocates the credit amount according to the product repayment hierarchy.